By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited says it will reach President Bola Tinubu’s target of two million barrels per day of crude oil production by December 2024.
This state-owned oil agency claimed as of Thursday, November 14, 2024, it had reached the mark of 1.78 million barrels per day of crude oil output.
The company also revealed that it is now producing 7.4 million standard cubic feet of gas to power the gas infrastructure, especially the Ajaokuta–Kaduna–Kano (AKK) gas pipeline. This is an improvement from 6.1 million standard cubic feet earlier in the year.
The NNPC noted that the accomplishment, which aligns with the government’s budget, reflects the dedication of all of its teams over the past weeks.
During an interactive session with the Senate Committee on Finance at the National Assembly in December last year, the Group Chief Executive Officer (GCEO) of the Company, Mr Mele Kyari, assured that the projections on crude oil production and price benchmark for the 2024 Budget were realistic and realizable.
Speaking on the dynamics of the market in relation to the projected budget benchmark price of $77.96 per barrel, Kyari said: “With what we see in the market today and potentially in the year 2024 and even beyond the next two years, it is very unlikely to see $70 per barrel oil in the market.
“The oscillation we are seeing, sometimes you do see prices coming down to $75 to the barrel and sometimes it goes above it, overall, benchmarks are averages. We think that the proposal by Mr. President around the $77.96 is still realisable in 2024.”
On the crude oil production projection, Mr Kyari stated, “The number we have is 1.785 million barrels per day. This is cumulative of all oil produced in the country. This figure is inclusive of all production including crude oil and condensate.
“I need to make this clarification because of the reports in the media that our OPEC quota is 1.5 million barrels per day. The OPEC quota is related only to crude oil. We also do between 250,000 to 300,000 barrels per day of condensate in our production. When you combine the two, the 1.78 million barrels per day is realistic and realisable.”